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H.B. 863
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VETOES
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[(g)] (I) "Reasonable and necessary maintenance" means those operations
which the person guaranteed reasonably can be expected to perform or have
performed and which are necessary to keep the [consumer] product performing its
intended function.
[(h)] (J) "Replace" means:
(1) To replace a [consumer] product or its component with a new and
identical or equivalent [consumer] product or component; or
(2) To refund the price of the [consumer] product or its component less
reasonable depreciation if:
(i) Neither replacement nor repair is commercially practicable; or
(ii) The person guaranteed is willing to accept the refund in place of
the replacement or repair.
(K) (1) "SERVICE CONTRACT" MEANS A CONTRACT OR AGREEMENT FOR A
SEPARATELY STATED CONSIDERATION FOR A SPECIFIC DURATION TO PERFORM THE
REPAIR, REPLACEMENT, OR MAINTENANCE OF A PRODUCT, OR TO INDEMNIFY FOR
THE REPAIR, REPLACEMENT, OR MAINTENANCE, BECAUSE OF AN OPERATIONAL OR
STRUCTURAL FAILURE DUE TO A DEFECT IN MATERIALS, WORKMANSHIP, OR
NORMAL WEAR AND TEAR, WITH OR WITHOUT ADDITIONAL PROVISIONS FOR
INCIDENTAL PAYMENT OF INDEMNITY UNDER LIMITED CIRCUMSTANCES.
(2) "SERVICE CONTRACT" INCLUDES A CONTRACT OR AGREEMENT FOR
REPAIR, REPLACEMENT, OR MAINTENANCE OF A PRODUCT FOR DAMAGE RESULTING
FROM POWER SURGES AND ACCIDENTAL DAMAGE FROM HANDLING.
(3) "SERVICE CONTRACT" DOES NOT INCLUDE:
(I) A GUARANTY;
(II) A MAINTENANCE AGREEMENT THAT DOES NOT INCLUDE A
PROVISION FOR THE REPAIR, REPLACEMENT, OR MAINTENANCE OF A PRODUCT
BECAUSE OF AN OPERATIONAL OR STRUCTURAL FAILURE DUE TO A DEFECT IN
MATERIALS, WORKMANSHIP, OR NORMAL WEAR AND TEAR;
(III) A WARRANTY, SERVICE CONTRACT, OR MAINTENANCE
AGREEMENT OFFERED BY A PUBLIC UTILITY ON ITS TRANSMISSION DEVICES TO THE
EXTENT IT IS REGULATED BY THE PUBLIC SERVICE COMMISSION;
(IV) A MECHANICAL REPAIR CONTRACT UNDER § 15-311.2 OF THE
TRANSPORTATION ARTICLE; OR
(V) MECHANICAL BREAKDOWN INSURANCE.
[(i)] (L) (1) "Services" means work, labor, or any other kind of activity
furnished or agreed to be furnished to a person guaranteed.
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- 5240 -
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